Washington’s focus has shifted to immigration reform this week as a bipartisan group of Senators put forward a comprehensive plan on Monday and President Obama followed with a proposal of his own yesterday. The debate thus far has been anchored around the bipartisan Senate proposal, the President’s support for a “path to citizenship,” and House Republican’s opposition to it. The opposition to the plan so far has centered around concerns about such a deal inviting a new influx of undocumented workers, or its rewarding those who have violated the law. These are important discussions to have, but with the economy here at home still so fragile, many are wondering what sort of effect immigration has on the American economy.

Here’s a look at four big questions concerning the economics of immigration:

Does immigration reduce wages for native-born Americans?

It might seem like a no-brainer that increased immigration would reduce the wages of native-born Americans. A simple supply and demand model would tell you that more workers means lower wages. But the story is actually more complicated than that. According to a 2010 survey of the economic literature on the subject, the Brookings Institute concluded that, “The most recent academic research suggests that, on average, immigrants raise the overall standard of living of American workers by boosting wages and lowering prices.”

How can it be that more workers competing over the same jobs can lead to higher wages? The reason is that it’s not actually more workers competing over the same jobs. Immigration actually changes what jobs employers need to fill. For one, an influx of cheap labor can make certain businesses like farming or restaurants feasible. (Absent cheap labor, these firms simply could not compete with foreign rivals.) Second, immigrants not only supply labor, but demand it, too. And a larger domestic population through immigration creates more potential customers for business, as well.

Is immigration a drain on the welfare state?

Another popular argument for maintaining tough restrictions on immigration is that without strict laws limiting immigration, unskilled workers would flock to America to take advantage of its relatively robust welfare state. The economic literature in this area yields conflicting conclusions and varies greatly depending on the country being studied. Some studies show that immigrants take out more in benefits than they pay in taxes, while other studies show the opposite. But George Mason University economist Bryan Caplan argues that the welfare state in America specifically dissuades folks from coming here purely for welfare benefits. First, writes Caplan:

“Contrary to popular stereotypes, welfare states focus on the old, not the poor. Social Security and Medicare dwarf means-tested programs. Since immigrants tend to be young, they often end up supporting elderly natives rather than ‘milking the system.’ Illegal immigrants who pay taxes on fake Social Security numbers are pure profit for the Treasury. In 2005, Social Security’s chief actuary estimated that without all the taxes paid on invalid Social Security numbers, ‘the system’s long-term funding hole over 75 years would be 10 percent deeper.'”

Second, Caplan points out that most government spending is what economists call “nonrival,” meaning that the government “can serve a larger population with little or no extra cost.” For instance, he argues, the United States military could adequately defend a population of twice the size of America for the same, or just slightly higher, cost. “An even clearer case,” Caplan writes, is “if the population of the U.S. doubled overnight, the national debt (not deficit) would remain the same, and the per capita debt would halve. The lesson: Immigrants can pull their own fiscal weight even if their tax bills are well below average.”

The most important factor driving economic growth is innovation. To put it simply, if American workers and firms can figure out how to do their jobs more efficiently, we’ll see economic growth. And according to University of California economist Gordon Hanson, immigrants — specifically high-skilled immigrants — are great for innovation. Immigrants are more likely than native-born Americans to secure patents on new inventions or processes, and Hanson argues, immigrants can bring unique knowledge about foreign markets to American firms.

But it’s not just high-skilled immigrants who can help boost economic growth in America. According to Hanson, low-skilled immigrant workers can make the American economy more efficient as well. First of all, low-skilled immigrant workers are more willing to move to find work than native-born American workers. Writes Hanson:

“Low-skilled U.S.-born workers tend to be immobile across regions. When, say, the demand for low-skilled labor picks up in North Carolina, native-born workers in other regions are slow to move in . . . The consequence of the immobility of low skilled labor is to gum up the labor market, slowing the pace of growth in booming regions and the pace of recovery in slumping regions.”

In addition, an increase in low-skilled immigrant workers can also help to make the high-end of the labor force more efficient. Increasingly, high-skilled workers are women who are also married to high-skilled husbands. And an increase in low-skilled labor willing to do everyday housework like laundry, cleaning, and childcare frees these workers to spend time more productively at their jobs.

Whom does immigration hurt then?

Economists, as a rule, like to look at the big picture. And the vast majority of the economic literature argues that a more liberal immigration policy would be good for the U.S. economy as a whole. The problem is, of course, that not everyone is going to come out a winner. A particularly contentious issue as far as economists are concerned is the effect of immigration on low-income, native-born workers. As I mentioned before, the literature is divided on whether an increase in low-skilled immigrant labor hurts low-skilled native workers in the long-run or not.

But it’s almost certain that in individual cases there will be workers who get put out of work by immigrant competition. And these individual stories of hardship are a much more salient effect of immigration than a slew of patents that make hundreds of products ever-so-slightly more efficient. In other words, the benefits of increased immigration will be spread out among the entire population, while the costs will be borne by a relatively small group of individuals who will feel the effects acutely.

In addition, we must not forget that there is more at stake here than purely economic considerations. Those who are opposed to more liberal immigration policies, or a “path to citizenship” for undocumented workers in America are concerned about ideas of fairness, the sanctity of the law, and the integrity of American culture. And these are all issues that will be debated openly and forcefully in the coming months as Congress considers the issue. But as these debates continue, it’s worth noting that mainstream economists mostly agree that more immigration is, on balance, good for the economy.

The US citizens are the real losers. I find it interesting that when the immigrants started coming in droves we were told that "they are doing the jobs that American's don't wants" and around the same time our jobs were being outsourced. What was once the middle class is now the new poor and our wages have dropped to a new low. We are fighting just to survive and it's not getting any better. The job creation BS is thrown into the news every now and then but we're all on a downhill slide and there seems to be no end in sight. When will we all wake up and decide we've put up with just about enough with these clowns in Washington. I for one am just about to the end of my rope. These immigrants are now in construction and are taking many jobs that we as natural citizens want and need in order to provide for our families. They are considered minorities and are given first rights to many jobs over "non-hispanic whites" (where the heck did that term come from????) My carpenter husband has been laid off many, many times as hispanics are hired in his place. Should we move to Mexico and try to buy land to live and work there? Oh, wait that's not allowed for US Citizens.. Canada keeps their jobs for their citizens and you can't be come a citizen unless you are a millionaire or are able to do a job their citizens can't. So where should we go to survive?

when only hanson and the brookings institute (both skewed to the far left) are the only people giving opinions , when what we really need is an opinion from the center which is protecting american citizens as far as i can see this economy is far from what it was .. i'm not arguing for the Right repubs on the contrary both want immigrants , on the right its cheap cheap labor for the wealthy corporate farmers... on the left dems its more poor people to assure a welfare state that by and large vote democrat thereby increasing their voting base .... and the same goes for hispanics in congress that encourage this .. it would really be nice if our own gov had the .. what was once called the 'silent majority' in mind instead of being pushed aside as though they have some great advantage ... when the silent majority has taken the brunt of the economic melt down, the brunt of the 2 wars in the last 10 years .. ... to say that an immigrant is more likely to move or is a harder worker is a bold faced slam to every american citizen that wants a home , stability and a family that doesnt want to live in a shack or a tent in order to be a hard worker .. arent they people too ?

What is BS is that Americans don't have a claim to this land this land was originally the Native indians, and the even funnier this is those "illegal aliens" are actual descendants of native Indians so they hold an even bigger claim to this land then actual american. So before anyone goes and calls people Traitors for helping hard working people you might want to think about how narrow minded and a hypocrite most people are being about mexicans stealing jobs and etc when this land was stolen.

The FACT is that Hispanic Americans do NOT want amnesty for illegal aliens. So, then, just who do these so-called "immigrant rights" groups represent?

The answer is that they have nothing whatsover to do with "immigrants" OR "rights." They are seditious "Reconquista" groups.

Reconquista groups are groups that believe the Southwestern U.S. was stolen from Mexico. They want to reconquer (reconquista) the area and create a Chicano homeland called "Aztlan."

Under the euphuism 'Hispanic Homeland' and 'Nation of Aztlan,' activists from numerous organizations including Mexican American Legal Defense and La Raza (The Race) activists are attempting to annex large portions of SW United States to Mexico. "Republica del Norte," the Republic of the North, which would include the present U.S. states of California, Arizona, New Mexico, Texa...s, plus southern Colorado, along with several current Mexican states, is "an inevitability" says Charles Truxillo, professor, University of New Mexico. He further states the new "Hispanic Homeland" should be brought into being "by any means necessary."

Polls show that Hispanic-Americans, like all Americans, support stronger enforcement of our immigration laws. http://tinyurl.com/k5pmyq7

I agree, Immigration
has been a prolonged issue in the U.S because politically it has guaranteed
power over minority groups who ideally threaten the American ways. The issue of
immigration has served as propaganda for America, which ironically also ads to
the problem. But is the concern really the economy? The desperate need of
immigrants to financially support their family leads to illegal actions that
create an obligatory consideration to security.
Not to say that these actions are acts of violence but instead a burden
to the law, resources and past cases of discrimination or terrorism. When three
out of every 100 people in America are undocumented or documented with fake
papers; there is a serious and known security problem. According to “The White
House Blog,” immigrants start businesses, boost earnings for American workers,
develop technologies and companies, boost demand for local consumer goods etc.

I propose that a limited worker program in which
immigrants are given legal documentation for the purposes of employment would
decrease illegal actions and benefit the economy. A form of citizenship such as
the DREAM Act was found effective towards reducing the deficit.Although it is a tough thing
to suggest, an immigration reform would help the government know who people
are, where they are and what they do. Otherwise, many illegal immigrants have
and will continue to get away with acts of crime due to the fact that they
don’t have an identity. Lastly, the U.S government is responsible for
encouraging immigrants to become invested in the American culture by learning
English, paying taxes and following the law. (Consider “The Melting Pot”). As a
result, immigrants would feel the need to act as a citizen and take care of
this country as well as their home country.

This is just another biased,lie artical trying to make Illegal Aliens seem important to our econamy,yes they hold down wages.because they work for what the employer WANTS to pay them whitch is slave wages at best!.,yes they suck our safty nets dry because it costs up to $10,000 a year for one illegal alien child to go to one of our scools,They collect the welfare,attend the scool undercut an americans job,and pay no taxes.except sales taxes.thats nothing compared to a USA Citizen or legal resident immigrant!.We give and they take period.problem wqith Pathway to citizenship (AMNESTY)no matter how long they say it will take is still Amnesty,We break a law we dont get rewarded for it,we get punished.The crime,gangs,prison costs,the verry fact some hang the United States flagg upside down under the Mexican flagg is reason enough for me to want them all gone!.Our Emergancy rooms,and welfare offices are allways packed full of Mexicans.and the USA Citizen allways come up short on the fareness side of this bias stick!.Our healthcare costs go up because we the USA Citizen pay for what they get.But we are suposed to be Politically correct.This is a sham artical at best!.

We invite organizations and individuals from all countries to march with us for a "JUST AND ATTAINABLE IMMIGRATION REFORM FOR ALL" to show our elected officials that we are all united in this cause. Please contact us right away if you will be participating and make sure to tell your friends that are sympathetic to our cause. We request that, if possible, everyone wears white. Please take only US flags to the march and if you have posters keep them positive.

We will meet at corner of Fremont St. and S. Main St. and travel East to 4th Street.From 4th Street we will travel South to Lewis Ave.From Lewis Ave. we will travel East to Rally on the West side of Las Vegas Blvd.

upto I looked at the receipt which had said $9927, I did not believe that my cousin was like they say actually bringing in money in there spare time from there labtop.. there best friend has done this 4 less than 21 months and as of now repaid the mortgage on there house and bought themselves a BMW 5-series. read more at, Great60.comTAKE A LOOK

All these illegal immigrants are already here and they are working and supporting their families. They are just not paying taxes, driving without license and have no liability and health insurance. Making them legal means bringing them out of shadow and making them pay taxes which will benefit government. One more point, the people here always take Mexicans and illegal in one breath. There are many whites from Sweden or Poland or Britain and many more blacks from Sudan or Nigeria illegally in USA. But the people here have no courage to ask where they are from. Whites are whites and blacks - you will be called racist just asking their nationality. Mexicans are easy to brand as illegals.

If Mexico keeps financially growing maybe they will build a wall to keep guns out and cut way back on the cartels income that keeps drugs from crossing the border. Also, if all you have is a high school degree it will be a lot harder to get a job. People from developed countries are more motivated to work hard labor jobs for minimum wage.

stop job-killing H1b's now, right now. Let your rep's know that is poison, and that you'll be remembering who voted for this when it's your turn to vote. The H1b system is full of fraud and corruption, don't believe the b/s about how everyone is following the rules and how we need this to stay competitive. It's bad for the economy and bad for the STEM professions. Stop H1b now

I
for one will pay attention to who votes for this new amnesty bill and
when it comes time to reelect the person I shall vote for someone
else. I will not care which party they belong to. I shall just vote
for the other person. I know that the media and the official thinks
that I will forget by the time there is an election, but I shall make
a bucket list just for elections from now on and I can go to the
bucket list and vote against them. Any official that votes for a law
that takes away my rights of any kind will lose my vote. If they vote
against a constitutional law they will lose my vote. I'm tire of
voting for someone who claims to be a one way and they when they are
elected they are the other. I have to work for a living so I do not
have the time nor should I need to protest every time an elected
official wonders off the reservation.

What
I see with this (new?) immigration law is that if enough people break
the law then the government can't enforce the law. 11 million illegal
people are telling the US government to stick it. What is the
government doing, they are going to make them citizens of the US. Was
it 3 million when Ronald Reagan gave them amnesty? Seems
to me that the government and those in the press willing to tell us
law abiding citizens how great this is are selling us down the river.
What a shame for our children and grand children.

I
do know one thing for sure, any time when and if I'm a juror I'll
decide for myself which laws I will believe in and which I
will disregard. I'll tell the judge what he wants to hear to
make sure I set on the jury. It is the only way I'm able to fight
back at this point and fight back I shall! I shall disregard any
instructions from the judge and make my own decisions. I'm sick
and tired of the elected elite picking and choosing which laws to
enforce and which to ignore. The swore to uphold the law and they are
not.

It
should be a new movement. It will be a way to push back. The heck
with what laws lawmakers come up with. Just follow the constitution
of the United States of America.

This is an absolute joke. The entire foundation of this article is based off of his own opinions as a REPORTER. Anybody that has an understanding of economics can shoot massive holes into each and every one of these conclusions.

we call this poetic justice, just as the americans, portuguese and spaniards came to our shores to enslave us, they educated us in their "western ways". now its payback when our brethren come to their shores not with guns and cannons but with education, hard work and quest for a better life. most of them send monies back home to their relatives, just as our early caucasian conquerors sends back the fruits of our enslavement back to their homeland.

Let’s face it, this immigration thing is a 20th century issue that has slopped over into the 21st century. The time has come to finally resolve it in an intelligent fashion, as three-fourths of Americans favor and Obama will undoubtedly confront. An interesting new worldwide book/ebook that helps explain the role, struggles, and contributions of immigrants and minorities is "What Foreigners Need To Know About America From A To Z: How to understand crazy American culture, people, government, business, language and more.” Endorsed by ambassadors, educators, and editors, it paints a revealing picture of America for those who will benefit from a better understanding.As the book points out, immigrants and minorities are a major force in America, as Romney recently discovered.They come to improve their lives and create a foundation of success for their children to build upon. Chapter after chapter identifies “foreigners” who became successful in the US and contributed to our society. However, most struggle in their efforts and need guidance. Perhaps intelligent immigration reform, White House-Congress cooperation, concerned citizens and books like this can extend a helping hand. www.AmericaAtoZ.com

These figures are taken from a table showing the average years of
schooling that adults of different countries attain. The average number
of years for the US is 12.

1. Mexico: 7.2 years of schooling
2. Guatemala: 3.5 years of schooling
3. El Salvador: 5.2 years of schooling
4. Honduras: 4.8 years of schooling

These 4 countries send the majority of illegal aliens to the US. Giving
citizenship to millions of poorly educated people, most of whom do not
speak English and tend to have larger than average size families is not a
recipe for economic growth. One is led to suspect that instead of any positive impact on the economy, we will see an increase in taxes needed to
support millions of additional recipients of services and benefits who
will pay little or nothing in taxes.

@MelissaTrahin I find it interesting that you highlighted the idea that undocumented immigrants do not take personal responsibility for the outcome of this country because they are not given the opportunity to be accepted in it. Thus, taking action to give them an identity within the United States may be beneficial for all, including existing citizens.

I don't know much about the amount of Black and White illegals. I just thought it funny because Mexicans are descendent from Native Americans, they even look like Native Americans, and their families were in the United States before the pilgrims came.

@ShreeShrestha Please get educated...87% of all ILLEGAL ALIENS come from "Latin America"! It is asinine to focus on the other 12% in order to simply not hurt the feelings of the 87% and their supporters. If they are illegal, "white, polish" whatever they are illegal...Stop trying to make this about race!

@BobStemple Most big laws now days are unconstitutional. The simple fact is that immigration is good if handled correctly and it is costing us more money to fight illegal immigration than just embracing them.

I don't like having to pay for food, but I've accepted the reality that humans need food to live. Your turn to accept reality instead of having unrealistic ideals.

@BobStemple Don't get me wrong, I completely see where you are coming from because it absolutely disgusts me how the complete negligence across the board by our decision makers have let it get to this point. However, considering where we are at now and going forward from here, from a fiscal resource standpoint we could either dump an enormous amount of money we don't have and focus in the strategic tracking down, deporting, and maintenance of them or could FINALLY be accountable for once and document, monitor, and hold them responsible for themselves like the rest of us law abiding citizens and get a massive (and long overdue) economic surge from the taxes contributed by their legal wages earned.

@DanielGenseric Your logic is so very flawed and obviously racist. I am against any form of amnesty that includes "a path to citizenship" and will track how my representatives vote on this issue. However, I don't understand your concern for the future of "white children" as this is an issue that has more to do with fairness.

@GilbertGonzales LOL! Racists are clowns no matter what the "color"...Thank you moron; for highlighting what most of already know. This moronic theory that the "WEST" is to blame for the failings of the "third world" is getting old...

@GilbertGonzales You sound like a bitter pathetic racist towards white people because of hundreds and hundreds of years ago some people that neither of us were remotely connected to or even similar did? Enjoy your little shameful economy destroying crusade pablo..

@LanceJohnson true bro, people needs to be educated about immigrant, there are alot successful philanthropists and businessmen in america are in fact children or grandchildren of hard working immigrants over the last century, and thats not a long ago if you're speaking on a population related topic. I heard alot of people stating that all of these people are criminals, stealing from americans social welfare, so deport them, really? I heard once that a lack of knowledge can lead to ignorance, thats why I rarely argue with these kinds of individual. I am not backing these undocumented immigrants, so just stating that we need a rational, possible and smart form of immigration. If your wish is to close americans borders and or cease the flow of immigrants, thats like killing your body cells that become infected by a terminal virus instead being preventive of it. Americans is built on immigration, no matter what generations you're or where you're from, you still have some sort of ancestral ties to somewhere out of america. lol Look at what going on in cuba and north korean, I'm not speaking about the government system but the cut off from the outside world.

@challenger_girlfirst of all your source is irrelevant from the thesis in your topic. However, your concern is the flow of un-skilled and or low-skilled immigrant in america? lol picking fruits and vegetables or working at McDonald, or cleaning a house or hotel doesnt require a Bachelor or Ph.D so yes there is a need for non-skilled and low-skilled worker whether they're americans or immigrants. And the proposed law is aimed at securing the borders and learning english, so i think it may resolve your concerns. So yes you should support it them :). and as for your tax concerns, do it a research, the law is aimed at bringing these undocumented immigrant currently in america out of the shadow to the tax table so they are accounted for. My only adding is to deport the criminals out of them which account to small percentage amongst them. And if you did your research, you'll find out that most of these folks are young to middle aged adults, so the government will just have to make sure that they have to work, unless under extreme circumstances. Just like how, if you're paroled felon or criminal, one of the requirement will be that you maintain a valid employment, so this should apply to these folks too. And of course, they must be fines (pay back taxes, legalization fee, etc)

@aoeu512@ShreeShrestha Bingo! If the majority of illegals were from northern Europe we would not even be having this conversation. Since most of those who are from south of us,carry Indian blood, as a Native American,considering this countrys history, I call it poetic justice.

@Benj1234 you can grow your own food. Hunt your own food. No one is forcing you to buy. What I had paying for is cable TV and the have to set through commercials! So I do not pay for cable TV, and if I'm watching a program on the antenna that has commercials I usually put in a DVD and watch a movie that I've seen more than once. At least I'm not watching commercials. If I like a show I will buy the DVD and watch the show commercial free.

@Benj1234 So let me get this straight: most laws that, by definition, are required to be in accordance with the outline of our constitution are all unconstitutional? Okay, moving on... yes it is costing our nation a lot of money to combat this illegal immigration epidemic right now but if you had any understanding of basic economics then it would be clear that the massive amount of illegal immigrants TAKING (utilizing state/federally funded things like public schools, social programs, roads, prisons, police, etc.) and not CONTRIBUTING to the pot via taxes you have a crippling imbalance of your elementary concept of give/take. You're right, legal immigration can definitely be good for us when contained through caps and facilitating their transition to a contributing member of our society. It is completely irresponsible and ignorant to 'embrace' illegals in this country. Do you think it is a coincidence that the state of California is in financial ruins despite being an affluent and prominent hub for wealth and worldwide metropolises?.

@AverageGuru@LanceJohnson This 2013 not 1913. Legal immigration is not under attack. That we are a "nation of immigrants" is an observation that is being exploited to justify amnesty for illegals. I say vote out those in office who support amnesty.

@AverageGuru I dont think anybody is raising a legitimate argument for 'shutting down the borders' altogether. LEGAL immigration is fine, it fosters accountability and they are contributors to our economy. It's the ILLEGAL/UNDOCUMENTED immigrants that cause an increasingly dangerous imbalance to the basic economic concept of contributing (taxes) and utilizing resources (streets, social programs, public schools). When white Americans are raising hell about this enormous problem and are automatically labeled as racists or being ignorant is an absolute cop-out and ironically it's way more ignorant on their behalf to do so.

@RyanLeonard lol I cant argue with you on this one. You're correct on most part, but I dont think majorly putting any partial blame of our economy taking a down turn is so so true. Analogy 'if you keep blowing a balloon, it'll keep growing until it bursts'. And wall street has alot to do with, look at fact; at the end of the so-called economical downturn, alot of wall street traders were convicted for embezzlement, mismanaging of funds, pyramids scams and etc. Do you think illegals immigrants has something to do with this? And this effect wasnt until in America but the whole wide world. In fact Spain had it worse, at one point the Euro nations wanted to kick them out, Spain, as a whole a country almost file a sort of bankruptcy. Additionally, since the cold war till now if you calculate the amount of money spend, you'll be astonished. Of course a lot the money spent were beneficial; NASA, chemical engineering, etc. helps bolster American's defense and weaponry but there were alot unnecessary spendings (speaking of the Iraqi war, money and perks given to the Pakistanis to help find Osama and lol and they used Osama as a main way to extort money from america #conspiracy) but yeah you made alot rational points though.

@AverageGuru@RyanLeonardWell at this point I'm ecstatic that this catastrophic issue is at least gathering this much attention as a whole. I think it's borderline criminal how the target demographic strategies that result in a better chance to win an election are first on the priority list before a dangerous issue crumbling our economic infrastructure from within. However, I think that going forward from here and realizing as a whole that we pretty much have screwed up there needs to be a drastic change in the tightening up in illegal immigration from here on out. I think that the 'slowing down' of the mind-boggling numbers coming through our invisible borders had a lot to do with our economy taking one of the worst blows in history and the disparity leveled out and also it was such a free-for-all that most of the groups of people with coming here in their minds had already done so. When it comes to the undocumented illegals already here we need to be realistic about it from a fiscal resource standpoint; you can pour an enormous amount of money into tracking down and deporting them to the border and seeing them about 2 months later back in the states or you can FINALLY be accountable and mandate responsible citizenship through their contributing to our economy and be law-abiding citizens like the rest of us.

@RyanLeonard thats why congress needs to address the issue, but one of the stalemate is what to do with the estimated 11 millions undocumented already here. We all can argue that there are still illegal crossing the border, but the fact speaks louder, these crossings had decreased through the years. So augmented more securities at the border can even curb this situation much further. But what to do with the remaining 11 millions here?